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State Benefit·Minnesota·🏛️Tax Benefits

Military Retirement Pay Tax Subtraction

Full subtraction of military retirement pay from Minnesota state taxable income.

Verified May 12, 2026againstrevenue.state.mn.us

At a glance

Benefit type
Tax Benefits — Minnesota
Who it's for
Veterans, Survivors
VA rating needed
No rating requirement
Estimated value
Full retirement pay exemption
Where it applies
Minnesota
Last verified
May 12, 2026

What is Military Retirement Pay Tax Subtraction?

Military Retirement Pay Tax Subtraction is a Minnesota tax benefits benefit for veterans, survivors. Full subtraction of military retirement pay from Minnesota state taxable income. The listed value is Full retirement pay exemption.

Who qualifies

VeteransSurvivors
  • Available to any veteran
  • Honorable discharge required
  • Minnesota residency

How to apply

Apply through the official Minnesota agency.

Open application

Who is eligible

Eligibility

Military retirees receiving retirement pay computed under U.S. Code title 10, sections 1401–1414, 1447–1455, and 12733 (full-time military, National Guard, reserves), and Survivor Benefit Plan recipients (sections 1447–1455 covers SBP). Cannot be combined with the nonrefundable past military service credit.

How to apply for Military Retirement Pay Tax Subtraction

How to claim

Claim the subtraction on Schedule M1M with your Minnesota state tax return.

Open applicationVerify at official source

Verified information & sources

Last verified: May 12, 2026

Official source: revenue.state.mn.us

Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.

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Frequently asked questions about Military Retirement Pay Tax Subtraction

Who qualifies for Military Retirement Pay Tax Subtraction?▾
Military Retirement Pay Tax Subtraction is for Veterans, Survivors; available to any veteran; minnesota residency. See the eligibility details on this page and confirm with the official source before applying.
How much is Military Retirement Pay Tax Subtraction worth?▾
The listed value is Full retirement pay exemption. Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Military Retirement Pay Tax Subtraction?▾
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Military Retirement Pay Tax Subtraction?▾
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.

Other Minnesota Tax Benefits

Property Tax Market Value Exclusion (70-99%)

Up to $150,000 exclusion of homestead market value from property taxes for veterans rated 70-99%.

Up to $150,000 exclusion

Property Tax Market Value Exclusion (100%)

Up to $300,000 exclusion of homestead market value from property taxes for 100% disabled veterans.

Up to $300,000 exclusion

Motor Vehicle Sales Tax Exemption (100% Disabled)

Exemption from 6.875% Motor Vehicle Sales Tax on vehicle purchases for 100% disabled veterans.

6.875% of vehicle purchase price

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